Series 7 - General Securities Representative Exam

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Which of the following describes a calamity call covenant for a municipal bond issue?

A promise to call in the bonds of the funded facility in case of deterioration of investment conditions
A
A promise to call in the bonds of the funded facility in case of catastrophe such as substantial damage.
B
A promise to call in the bonds of the funded facility in the event of sudden, sharp interest rate spikes
C
A promise to call in the bonds of the funded facility in case of a repeal of the excise taxes funding it
D

Explanations

A calamity call is an extraordinary redemption triggered by destruction or substantial damage to the facilities from which the revenues of the bonds were payable

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